| Home equity loans are often an easy way to | | | | collect the debt. If any debts are out or your |
| borrow money. Even persons with bad credit can | | | | states statute of limitations, ask for an |
| often qualify for a bad credit home equity loan. | | | | investigation by the credit reporting agency. |
| The loan is secured by the equity in your home | | | | Dispute the debt as not yours, since you are no |
| so even with bad credit the interest rates are | | | | longer legally responsible for the debt. Many |
| often better than other sources of loans. You will | | | | collectors know that there is nothing they can do |
| still however pay more interest if you have a bad | | | | about such debts, so they will let them fall off |
| credit rating. | | | | your credit report rather than waste any more |
| Persons having bad credit can often improve their | | | | effort on trying to collect what are in effect |
| credit score just by knowing a few tricks. These | | | | uncollectable debts. |
| tricks begin by obtaining a copy of each credit | | | | You will also need to send a letter to the |
| report that you can order from the credit agency | | | | company that reporting the bad debt. Their |
| that has given you a poor rating. | | | | address is listed on the credit report. Ask them |
| The Fair Credit Reporting Act requires that each | | | | for proof that the debt is yours. If they cannot |
| agency that collects credit information about you | | | | provide the proof they must stop reporting it on |
| provide annually a credit report for you to review. | | | | your credit report. They only have thirty days in |
| Additionally, you qualify for another free report if | | | | which to investigate and answer your request. |
| you are turned down for a loan based on that | | | | Your return receipt will have the date they got |
| report. | | | | the mail so that's when the clock starts ticking. |
| Once you obtain and review these records look | | | | As mentioned earlier, the cost of certified mail |
| closely for any inaccuracies being reported. In | | | | and the return receipt is small compared to the |
| addition, a bad debt can only affect your report | | | | amount of money this may save you in interest |
| for seven years after it went delinquent. If any | | | | charges on any loan you may take out. |
| debts are beyond the seven year mark, you | | | | Many times these two letters are all that are |
| should ask that they be removed from your | | | | needed to change a bad credit report into a |
| credit report. Make all requests by certified mail | | | | decent one. In a matter of just a few months |
| and to be on the safe side, pay for a return | | | | you may qualify for a much better interest rate |
| receipt on all correspondence. This procedure will | | | | on your home equity loan than if you had only |
| cost about five dollars, but is a necessary part of | | | | qualified for the bad credit home equity loan. It is |
| the process. | | | | certainly worth making the time to give it a try. |
| Best you should know the statute of limitations | | | | The work can save you several hundred dollars |
| for collecting debt in your state. If you are in the | | | | over the life of your loan. |
| right state, a company only has four years to | | | | |